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01 Feb 2026

Change of use for closed Leitrim village hotel could lead to 100 jobs locally

The resident said that a proposed purchaser for the Lough Allen Hotel, in Drumshanbo, is set to apply for planning permission to change the former hotel into a nursing home

Change of use for closed Leitrim village hotel could lead to 100 jobs locally

Lough Allen Hotel and Spa

A currently closed hotel in a Leitrim village could bring in 100 jobs if it is converted into a nursing home, a local told the Leitrim Observer this week. 

The resident said that a proposed purchaser for the Lough Allen Hotel, in Drumshanbo, is set to apply for planning permission to change the former hotel into a nursing home that could potentially serve the people of the area and provide employment. 

The Lough Allen Hotel and Spa was originally built in 2003 by the then registered owners Lough Allen Hotel and Spa Partnership, but the Hotel was leased to Dream Hotel, which then went into liquidation in 2008 during the economic crisis.

The Leitrim Observer understands that there is another interested party who wants to purchase the building to reopen it as a hotel however there are no more details about this proposed buyer at this time.

READ MORE: No funding available in Leitrim town for public lighting for 15 houses

The man who wishes to convert the building into a nursing home has "received substantial support" from Leitrim County Council, the Leitrim Observer was advised.

The resident said that "there was hope within the community that one or the other" proposals would go ahead. 

They said: "Potentially, both projects would have employment opportunities for over 100 people in the town."

They said it was hoped that progress could be made over the coming months to secure the sale. 

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